Growth stocks have recently reclaimed their top position, often at the expense of other sectors. If your main investment aim is income, this shift might not be significant, but it certainly opens up a buying opportunity. Essentially, it means you can purchase stocks offering new dividends at a reasonable price.
If you’re able to set aside $2,000 for an emergency fund or investments not needed for regular expenses, consider these three dividend stocks as potential investments.
PepsiCo
Coca-Cola has long been celebrated as a go-to dividend stock in the consumer staples sector, especially among beverage companies. In contrast, rival PepsiCo (PEP 0.46%) has struggled, particularly due to challenges in its Frito-Lay snack division since 2023.
Today’s changes
(-0.46%) $-0.73
current price
$157.65
Key data points
Market capitalization
$216 billion
daily range
$156.51 – $160.01
52 week range
$127.60 – $171.48
volume
294K
average volume
7.6M
gross profit
54.22%
dividend yield
3.61%
However, there might finally be some positive developments. Thanks to innovative efforts and price cuts, PepsiCo’s organic revenue rose by 2.6% last quarter, aligning with growth in its North American Foods sector. Profits and sales surpassed what analysts had anticipated.
While a strong quarter doesn’t always predict a lasting trend, it’s often where trends begin. Given PepsiCo’s recent underperformance, its forward dividend yield has reached 3.7%, which is a bit more attractive compared to Coca-Cola’s 2.8%.
Kenview
About two years ago, many investors might not have had the clearest understanding of pharmaceutical businesses like Johnson & Johnson. Now, Kenview (KVUE +0.86%) has taken over familiar brands including Tylenol, Listerine, Band-Aid, and Zyrtec.
This isn’t exactly a growth-centric business. Even so, single-digit revenue growth is typical in this sector. Still, it’s a solid opportunity for consistent and recurring dividends. These products tend to be essentials that households buy frequently, allowing for investment in a strong cash-generating business with a forward dividend yield of 4.8%, especially following last year’s slight dip.
Kenview is soon merging with Kimberly-Clark, which will likely create a robust consumer goods powerhouse. However, the dividends may not shift dramatically. Kimberly-Clark’s forward yield is similar at 5.2%. Personally, I’m a bit wary of this because Kenview’s current share price is slightly elevated, so I need to think through this merger carefully before finalizing my investment later this year.
Procter and Gamble
Lastly, Procter and Gamble (PG +2.67%) deserves a mention if you have a few thousand dollars to invest aiming for income. You might find yields around 3% here.
Today’s changes
(2.67%) $3.82
current price
$146.93
Key data points
Market capitalization
$341 billion
daily range
$143.16 – $147.59
52 week range
$137.62 – $170.99
volume
11M
average volume
11M
gross profit
51.11%
dividend yield
2.88%
P&G is recognized for products like Tide, Pampers, Gillette, and Crest, similar to those from Kenvue and PepsiCo. They tend to drive repetitive purchasing, positioning this company well for solid dividends and growth. In fact, Procter & Gamble has raised its annual dividend for 70 consecutive years, and the streak appears to be far from ending. It’s deeply entrenched in the consumer staples sector, which gives it a significant edge when it comes to marketing and advertisement. Some might call it an unfair advantage, but investors typically don’t seek fairness; they want reliable companies that can endure.
